The crisis tests the soul of companies

Unlike what happened in the Great Recession, the lifeline of the States has made it possible to withstand the blow of the crisis. However, more and more voices demand that companies change their attitude

And suddenly, a new opportunity for a different way of understanding the economy. The irruption of the coronavirus, a variable that no one had in their schemes, has stripped the discourse of those who believe —or did they believe?— that the market would be the balm of Fierabrás, the Cervantine cure for all ills: States have proven to be, ultimately, the last containment dams against a crisis that could have unleashed a real social earthquake. It is early to declare victory, but the step forward of the public powers in the West has avoided an earthquake with unforeseeable consequences: although inequality has risen, the employment maintenance programs (ERTE, in its Spanish version) have contained the blow to millions of families; aid and bailouts for companies have prevented an unprecedented destruction of the productive fabric; European funds, a new scheme unthinkable just a year ago, promise a more social way out of the crisis. The man for himself of a decade ago, in short, has no place today.

All the weight of the crisis has fallen on a single shoulders: those of the Administrations. The most liberal went to bed allergic to the public and woke up Keynesians, and the voices against the unprecedented fiscal and massive response have been silenced. But the “spend as much as you can”, the guideline of the IMF managing director herself – for decades guardian of the essence of orthodoxy – cannot be indefinite. The day will come, not too late, when governments will have to start limiting their use of checkbooks. And it will be at that moment, when the ERTE ends and the period in which companies can lay off again opens, when it will be seen if the sensitivity of the private sector is also again this time.

The consequences of the crisis will be felt for years. The long shadow of the States will be greater than before the virus, with inherited stakes in strategic companies and with hands freer than ever to develop an industrial policy that has been conspicuous by its absence in recent decades. And it will be, above all, the time when it will be shown if that bombastic slogan of “inclusive capitalism” is here to stay or if it is just another marketing campaign. “In the short term, the objective of companies is to survive and in this context it is logical that this is the case, but in the long run what matters is getting out of the rut in a socially and environmentally respectful way”, outlines Daniel Arenas, coordinator of the Group of Research on Corporate Social Responsibility at Esade, which recalls that today, unlike a few years ago.

To read the full article: https://www.saludymedicina.org/post/la-crisis-pone-a-prueba-el-alma-de-las-empresas

Where do trade unions stand now?

Trade union membership worldwide has been going down over time, despite a number of bright spots in certain African or Latin American countries where membership increased. Different factors come into play in this overall decrease: Think of the shift from manufacturing to service jobs, the outsourcing of unionized jobs, the informalization of the economy and the changing employment relationship, and automation.

In fact, trade union membership is lower for people in non-standard or precarious types of employment, such as temporary and own-account workers or workers in the informal and gig economy.

Furthermore, legal restrictions and violations of trade union rights, such as the right to organize and to bargain collectively, are widespread. This affects trade unions’ ability to organize, to represent and to service workers. Not surprisingly, trade union membership is lower there where there are violations of trade union rights.

Source: https://www.ilo.org/infostories/es-ES/Stories/Labour-Relations/trade-unions#where

Employees or freelancers? The European Union seeks to regulate hiring on digital platforms

Faced with the growing rise of digital delivery platforms, the European Commission wants hiring models like those already implemented in Spain or the United Kingdom to work for the entire 27-nation EU community bloc.

The Commission has launched a proposal along these lines, according to a draft document published by Reuters, which clarifies that the essence of the initiative is to classify those who work for these platforms as employees and not freelancers.

The document estimates that some 15 companies would be involved in the measure, which must pass through the legislative process in the European Parliament and which the authorities do not see as real before 2025.

The new rules would establish five criteria for determining when a worker on a digital platform is considered an employee. For example, whether the company determines their pay, sets standards of conduct and appearance, monitors work performance through electronic means, restricts their ability to choose their working hours or tasks and prevents them from working for third parties.

According to the paper, companies would be considered employers if they meet two of these criteria.

The European Trade Union Confederation Institute (ETUI) has already denounced the “amount of unpaid work” it says employees on digital platforms, such as home-delivery apps, are doing.

Some countries have already taken the lead

In a series of setbacks for online platforms, Britain’s Supreme Court ruled in February that Uber drivers are entitled to be paid a minimum wage, while a Spanish court said last year that delivery drivers for food delivery app Glovo were employees rather than self-employed.

The new proposal comes as several countries and European courts attempt to address this industry’s shortcomings. Judges, in most cases, back the premise that their workers have the same labour rights as those who work in a factory.

The exception is Belgium. On 11 December, a labour court ruled that Deliveroo delivery drivers cannot be reclassified as employees with contracts representing company tax and social security obligations.

In relation to the possible new regulation, Bolt, an Estonian ride-sharing and food delivery company, said that “one in two drivers will lose their job, which is equivalent to at least 140,000 people across the European Union”.

Deliveroo expressed the same concerns. “These proposals will increase uncertainty and will be better for lawyers than for self-employed platform workers,” a spokesperson for the company said.

Sources: Reuters and EFE